Tariff Structure

The salient features of tariff structure presently applicable to Electronics Hardware Industry in India are as under:

Peak rate of Basic Customs Duty (BCD) is 10%.

BCD on 217 tariff lines covered under the Information Technology Agreement (ITA) of WTO is 0%.

All goods required in the manufacture of ITA items are exempted from BCD subject to actual user condition. Special Additional duty of Customs (SAD) has been reduced from 4% to Nil for all goods except populated PCBs, falling under any Chapter of the Customs Tariff, for use in manufacture of ITA bound goods vide Notification No. 11/2015-Customs dated 01.03.2015.

BCD on specified raw materials / inputs used for manufacture of electronic components and optical fibres and cables is 0%.

BCD on specified capital goods used for manufacture of electronic goods is 0%.

To promote indigenous manufacturing of TVs, BCD has been reduced to 0% on the following:

LCD, LED or OLED TV Panels; Colour Picture Tube.

Specified parts of LCD and LED TV Panels (including open cell, plate diffuser, film diffuser, back light unit module).

To promote indigenous manufacturing of Set Top Boxes (STBs):

BCD on STBs increased to 10%.

The domestic STB manufacturers had to pay CST equivalent to VAT rate (typically 12.5%). This has been resolved by extending the facility of Form ‘C’ to STBs vide O.M of Department of Revenue dated 13th August, 2014.

To promote indigenous manufacturing of Mobile Handsets:

Parts, components and accessories for the manufacture of mobile handsets; sub-parts for the manufacture of such parts and components are exempted from BCD and Excise Duty.

Parts, components and accessories for use in the manufacture of tablet computers and their sub-parts for use in manufacture of parts, components and accessories are exempted from BCD, CVD and Special Additional Duty of Customs (SAD).